This post covers what it means to EMC, Data Domain and Data Domain's customers.

I'd like to write a subsequent post at some point with what this means to NetApp -- especially in the broader context of industry consolidation and go-forward strategies. And it ain't pretty.

So let's dive in, shall we?

The Core Of A New Business

The internal letter was pretty clear and unambiguous: Data Domain will eventually be a full product division within EMC.

This means that -- over time -- they will likely be the core orchestrator of all related EMC assets in this space -- engineering, partnering, go-to-market, support, etc.

This is roughly analogous to what happened with other acquisitions: EMC has a bunch of related assets, we acquire a centerpiece, make them the core, and continue to integrate and innovate around that core.

It's a play we know well.

What Technology Assets Could Fit?

The list of potential EMC assets that could potentially play one way or another with Data Domain is quite extensive.

Disclaimer: none of these are commitments, just idle speculation on the kinds of things that are possible once you juxtapose Data Domain across the broader EMC.

This sort of hybridization can be very powerful -- we've already done it with a number of technology acquisitions. It takes time to sort out the roadmap, do the integration work, productize, etc. -- but it's all interesting stuff.

So ... let's take a tour around the EMC portfolio, shall we?

On the hardware side, we've got some nice storage target devices to choose from that complement what Data Domain is selling today: CLARiiON, V-Max, Celerra, Centera, Atmos -- even Iomega! Potentially these might be sold as an integrated appliance, or as a software target -- lots of interesting scenarios there.

Next up, the EMC backup and recovery portfolio: the NetWorker suite that does not only all the classical backup/restore stuff (using a variety of mechanisms), but EMC's Data Protection Advisor (DPA) which has found a strong following from people who need to manage this stuff at a service delivery level.

Can't forget Avamar either -- the industry's premier client-side dedupe which now can be paired in interesting ways with the industry's premeir target-side dedupe.

Celerra -- in particular -- has a nice abstraction where files can be stored in dedupe format transparently from the access mechanism -- another interesting potential pairing. That same abstraction might make sense for other EMC storage platforms as well.

EMC spends a lot of time and money bringing pieces together -- not only technology integrations, but qualification, solutioneering, etc. -- basically making sure all the pieces work together as a complete environment that's fully characterized, supported, documented, etc.

I guess the first starting point is EMC's eLab -- still the industry standard for device-level interoperability and qualification. Right away, you can see the Data Domain product being qualified as part of larger and/or more complex topologies, backed by EMC's methodologies and customer service.

And then there's the EMC Proven Solution effort that's focused primarily on fully virtualized environments running tier 1 applications such as Exchange, SAP, Oracle et. al. Won't be too long before Data Domain is part of that party as well.

There's also a few specialized labs of note -- in particular the newer VCE lab (VMware, Cisco and EMC), which represents a rather largish investment focused on building private clouds built on virtualization for both enterprises and service providers.

Again, plenty here that makes the Data Domain capabilities potentially even more valuable and attractive in an EMC context over time.

What Go-To-Market Assets Could Fit?

I know most people outside the industry don't think much about go-to-market strategies, preferring instead to debate the pros and cons of different technologies, but -- in the final analysis -- nothing really succeeds unless there's an efficient way for it to reach a mass audience.

We've also have a specialized sales force that works with customers having more modest requirements, and brings in a wide range of partners, resellers and integrators in doing so. Again, another plug in.

Not to mention our existing engagements with OEMs, global system integrators, outsourcers and service providers -- again, more synergy from an existing market engagement model that's already focused in this space.

And, finally, there's EMC's professional services that can assess a requirement, do the integration, create the run book, and event run the entire environment in a managed services context. All potentially very complementary, if you think about it.

And Let's Not Forget Customer Service

One thing EMC is known for is best-in-class customer service. We've built the business largely on that reputation. Bringing EMC's global customer services capabilities to any acquired product removes an important set of concerns for many customers, making it easier to move ahead with newer technology.

Again, more synergy.

Feel Free To Criticize

Everyone has their opinion about this acquisition -- was it a good idea, was it a fair price, what was the real rationale, etc. Some people just don't like it when EMC does something smart.

People are free to speculate as they see fit -- as they always will do -- but from where I sit, there is a real and tangible 1+1=5 scenario here.

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Comments

So....as a current EMC customer coming to the end of a product evaluation (enterprise backup) and looking to cut a PO, what would be your advice? Buy the current EMC offering sans Data Domain and hope there's an honorable upgrade path from the DL3D? Skip the DL3D purchase and wait until the smoke clears?
It's exciting to think that the best target side dedupe is under the same corporate umbrella as the best client side dedupe, but unfortunately it put buyers in the 30-60 day timeframe in a bit of a conundrum.

DataDomain is obviously a great product that delivers better dedupe ratios than any software or hardware that EMC or anyone has today. The question here is: will EMC kill the dedupe on its existing EDLs to encorporate DD's technology? will it merge EDL and DD? how quick will Networker be tweaked (if ever) to be a single management center for the three backup platforms (EDL, Avamar, and now DD)?

We'll have to wait and see! but I am sure it will be an interesting journey where EMC will have to introduce a new addendum to its BURA story.

And while you said, "Can't forget Avamar," you did "forget" to talk about your EDL/3DL/Quantum-based products. In addition, @Storagezilla tweeted that there he "would expect that DDUP would be EMC's target dedup technology of choice going forward." The two of you together seem to be saying that Quantum has no future at EMC.

I thought Steve Kenniston's pitch at EMC World put forth the best vision I'd ever seen around data reduction technologies from any vendor. Basically it said the goal is to place data reduction IP (source and target-based de-dupe, single instancing, compression, etc...) across EMC's portfolio and allow those technologies to speak the same language such that you don't have to re-hydrate data as it's moved around the enterprise. Essentially making data reduction incremental and cumulative.

At that time, which of course was before the DDUP announcement, I said to myself - "awesome vision...and pigs will fly before that happens." :-)

I realize you're talking more about company integration but users would clearly benefit from the vision Steve put forth...Best of luck to you and the good folks at Data Domain.

Perhaps, by just making a little hole on top of your cone, you may be able to transform the cone of silence into the funnel of bragging rights, just a thought... Anyhow, I believe, EMC has overpaid a little, perhaps by as much as 1/3 because of the bidding war with NetApp. Joe must be seeing something we don’t see because he was willing to overextend to get Data Domain. No harm done since, due to their fiscally conservative policies in the past, EMC can afford it anyhow. As far as the integration is concerned, EMC has been demonstrating a good track record of executing and incorporating the acquired companies into its own DNA. Previously, Joe Tucci has made some excellent class A+ acquisitions during his tenure since the turn of the century. On the other hand, you can’t always ace. I think, all things considered, this will be a B+ acquisition.

Hi Chuck, Expensive purchase of data domain.
No way that it fits EMC except for the purpose you paused NetApp growth for now.

EMC will be only known for Symmetrix systems and it is definitely great system. The rest of integrations you talk about is good on paper. There will be a control center plug-in for datadomain and then EMC forgets about it.

I'm looking forward to your comments, re:
"I'd like to write a subsequent post at some point with what this means to NetApp -- especially in the broader context of industry consolidation and go-forward strategies. And it ain't pretty."

Umm Chuck: You said in earlier post how you didn't seen any benefit to NetApp in them acquiring DD, that is wasn't a good fit, spiral of death and all that.

This latest comment implies you will be writing about how bad it was for NetApp to miss out?

Hehe. I'll paraphrase, just for giggles: NetApp might as well pack up and go home, there ain't no chance of them doing anything remotely worthwhile (like chasing DD)...

Sorry about doing this acquisition mid-flight during your evaluation. I can't comment on your particular specifics, but -- in general -- if DL3D was a good decision before the acquisition, it'll be a good decision after the acquisition.

Most people don't appreciate the subtleties between inline target dedupe (e.g. Data Domain), and a platform that can switch between different modes -- uncompressed, inline, post processing, etc. -- as your needs change and evolve (e.g. DL3D).

You'll hear people say that the DL3D is dead. Not true, although there are those who would like you to believe it.

Yeah, like we'd shoot a successful and differentiated product like the Disk Library with thousands of happy customers just because we acquired a complementary technology.